TQQQ trade ideas
More room to run in TQQQBullish heiken ashi close for entry signal
I got about 2/3 of the position I wanted to and it continued to run after hours.
Sell signal is first red heiken ashi or we will sell 10% of position at 190.52(+4% gain). Additional take profits at +6%, +8%, +10% and +12% if we get there.
Tomorrow, if at any time we go below today's close (183.19) but stay in a bullish daily heiken ashi, I will add more.
US Index ETF - TQQQ REMAINS STRONG AND BULLISHAFTER Pence announces Biden's victory after Congress completes electoral count, MARKET HAD SHOWN STRENGTH
TQQQ long term off March lowsSimilar story to the QQQ etf, looking for the final wave 5 leg to take us anywhere in between 190 and 220. After we expect a macro correction in the overall markets.
Disclaimer: The proceeding content is informational only and based on information available when created. It is not an offer or a solicitation nor is it tax or legal advice. It does not consider your financial circumstances and objectives and may not be suitable for you.
Copyright Rohan Karunaratne 2020
Ain't looking good..Rising wedge pattern on daily chart. Support lines are green.. if 164 doesn't hold , Tqqq will do a double top into 157.. Maybe fears of new covid strain will bump fang and prevent this
TQQQ target lowered to 190, completing micro and macro 5 wavesSimilar chart as QQQ, modified from standard impulse, to ending diagonal, with a target of 190 now. After this, we expect a macro correction in the market.
Disclaimer: The proceeding content is informational only and based on information available when created. It is not an offer or a solicitation nor is it tax or legal advice. It does not consider your financial circumstances and objectives and may not be suitable for you.
Copyright Rohan Karunaratne 2020
Maybe should wait a little, take some profits if you haven't1) Solid run up in the beginning of December. Q4 is historically bullish while Q1 is historically bearish.
2) Tested the lows, nothing big. Good rebound.
3) Once is chance, twice is a pattern. There's another retest on high volume, but again a good a bounce.
4) No new highs. It's difficult to tell if it was just low holiday volatility or something else.
5) And now we have the third high volume drop at the start of Q1, a historically bearish quarter.
I'm not a fan of shorting the stock market because it's on a 100 year uptrend, but I think it's best to sit out for now. The rises are weak while the dumps are heavy. I'm expecting sideways movement before another uptrend. Stay safe!
TQQQ - Relief rallyHarmonic pattern.
Good chance of a bounce here and a rally.
Bearish ending though
TQQQ long swing trade entry off- heiken ashi strategyShortly after bouncing off the 21 day moving average, we got a buy signal.
Closing price was 164.74
1st Take Profit (10% of position @ 4%) = $171.33
2nd Take Profit (10% of position @ 8%) = $177.92
Exiting on 1st red heiken ashi or 9th green. No stop loss, chart shows 12.3%, this is max single trade drawdown of this strategy from 2010-2020, in order to show max risk.
TQQQ completed 3, potential to retest 170, target 190Sorry for the confusing wording, I basically think that the low put in intraday Friday can be considered a completed 4th, or potentially, we can try to retest those lows before filling out wave 5.
Copyright Rohan Karunaratne 2020
End of year Big ShortTQQQ is ending a corrective structure. The High is at hand, get ready for the big short.
TQQQ Retest/RemountTQQQ is a leveraged ETF for the Nasdaq QQQ. The QQQ's have retested previous breakout levels and have now remounted back above that level. This is a bullish sign and indicates that there may be a run up back to the previous high next week.
TQQQ wave 4 retracement right on the money, target 160Im in at 160, target 188 for wave 5. Copyright Rohan Karunaratne 2020
How To Manage A Trade That's In Trouble - My Options Trade On TQI’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades.
What Do You Do When You Find Yourself In A Trade That's In Trouble?
So you have a trading strategy.
You have your trading tools ready to go at your fingertips.
You trade with a paper trading account to make sure your trading strategy is solid.
You’re finally ready to start making real trades.
You start trading and everything goes according to plan until a trade comes along when it doesn’t.
Now you find yourself in a trade that is in trouble.
How do you handle this? Well, the first thing you need to remember to do is to keep your cool.
One of the most important aspects of trading is being in the right mindset.
This is important because trades will go against you from time to time.
It’s just the nature of the business, and you can’t lose your cool when this happens.
If you aren’t in the proper mindset when a trade goes against you, then you will not be properly equipped to manage it, and I have some good news… there IS a way to manage a trade that’s in trouble.
I was in such a trade recently, and I will show you how I handled it.
How I Managed A Trade In Trouble Step-By-Step
I was recently in a trade with TQQQ . I opened up my trading software and say I was at -$3,500 open P&L with this trade.
1) The first thing that I did is I sold a put with 150 strike price and I received $66 in premium .
2) However, what happened is with this particular trade was I got assigned.
So I had to buy 100 shares of TQQQ for $150 each.
At this time TQQQ was trading at $116 which was not good because I bought it at $150.
However, as soon as I was assigned these shares, I starting selling calls against these shares.
This is how The Wheel Strategy works.
You first sell puts and collect premium.
If & when you get assigned, you then sell covered calls against these shares at a higher strike price to try and get “called away” to sell the shares at a profit, and you keep doing this while collecting premium until you do get called away.
Now understand, you will get assigned trading The Wheel Strategy, but trust me this is a good thing.
3) So I then sold a call with a strike price of 155 for $2.10 .
Now with this call, I could have actually been “called away” on this trade and sold the shares at a profit, but I felt that I could just instead hold onto the shares to possibly sell them for a higher profit.
So I just kept the premium of $210 ($2.10 multiplied by 100 shares) I collected on this, and then the next day I bought the call back for $0.37 .
So $2.10 I collected in premium minus $0.37 that I paid to buy the call back, comes to $1.73 which means I made $173 in premium. These are realized profits.
4) Next, I sold another call, this time with a strike price of 150 for $0.45 and I also bought it back for $0.05 2 days later to keep from being called away to sell them later at a higher profit, but collected more premium.
So this means if you take the $0.45 I collected and subtract the $0.05 I paid to buy the call back this comes to $0.40 which means I made another $40.
If you add up all the premium collected so far ($66, $173, &$40) I have made a total realized profit of $279 so far over the last 15 days, which is not too shabby.
5) The price of TQQQ started plummeting, so instead of selling another call, I instead, decided to sell two puts with a strike price of 100 for $1.14 .
I chose to sell two, based on what my account size allowed if I were to get assigned again.
So with each share yielding me $1.14 in premium a share, this comes to $114 each contract, and since I sold two contracts, I collected $228 in premium total ($507 overall).
What Happens If You Get Assigned again?
Now you might be thinking selling puts was a bad idea. I mean, what happens if TQQQ is below $100 by expiration, and I have to buy 200 more shares of TQQQ ?
It would actually be really, really awesome if this would happen. There are actually two scenarios of what could happen and they are both awesome.
In the first possible scenario, TQQQ stays above $100 by expiration, which is in one week.
In this case, I keep the $228 and my total profit from this trade goes up to $507.
Now scenario two, and this is the one that would make some people nervous, is if TQQQ drops below $100 on expiration.
In this case, I have to buy another 200 shares for $100.
Here is why this would be a good thing, and why buying more puts was a smart move, but I’ll let you be the judge.
If scenario number two happens, I would have bought 100 shares for $150 and I would have bought another 200 shares for $100.
So this means that right now my cost basis is lowered when you average the cost of the total price I would have paid for all 300 shares.
So I did buy 100 shares times 150, plus 200 times 100, and I’m dividing all of this by 300 so that I get my average price per share.
This means $116.60 is the average price I paid per share.
So this means as soon as TQQQ moves back up to $116 I break even, and if it moves above $166 I’m making money.
So $116.66 is my new magic level instead of $150.
Now look at this, is it more likely that over the next few weeks TQQQ goes above $116.66 or $150? $116 right?
So by doing this, if scenario one happens, okay, great, I just keep racking up premium, and that’s fine.
If scenario two happens even better, I’m lowering my cost basis here.
If the new average price per share is $116.66 per share, instead of what it actually was which was $150, it is easier to get back into the green.
Summary
This is how I managed this trade.
At first glance, it simply looked like it was in trouble, but in reality, all you need to do is keep collecting premium, and when you can, lower your average price per share.
Both of these things will lower your cost basis, making it easier to get back into the green when a trade is going against you.
This is the beauty of The Wheel Strategy, even when a trade is going against you the strategy is still going according to plan.
